RURAL INNOVATIONS IN ACTION: IMPLEMENTING SUSTAINABLE DEVELOPMENT GOALS AT THE VILLAGE LEVEL

Purpose — This study aims to examine the ‘Village Fund Allocation’ in Central Java, Indonesia, and explore its dimensions based on the Sustainable Development Goals (SDGs) framework while determining priority programmes that contribute to the SDGs’implementation.

Design/Methodology/Approach — A mixed-method approach integrating qualitative and quantitative techniques is employed. The Analytical Network Process (ANP) method is used for data analysis, supported by the SuperDecisions software. The study population consists of village governments in Central Java, with data collected using a nonprobability sampling technique.

Findings — The findings reveal that the Village Fund Allocation in Central Java comprises key stages, including planning, implementation, distribution, utilisation, reporting, and accountability. The study underscores the necessity of adhering to five core principles: humanity, justice, diversity, natural balance, and national interests. Identified priority programmes include national economic recovery, central government priority initiatives, and adaptation to new habits. The key SDG indicators for village development emphasised in this study are poverty reduction, hunger eradication, health, prosperity, and quality education.

Originality/Value — This study contributes original insights by applying the ANP method to analyse Village Fund Allocation Management, a novel approach in this research area. By incorporating a systematic decision-making framework, this study provides a fresh perspective on how decentralised government units can align financial management with national and global SDG agendas, thereby improving the effectiveness, efficiency, and equity in fund allocation for rural development.

Research Limitations/Implications — The study is limited to villages in Central Java, and its findings may not be directly generalisable to regions with different socioeconomic characteristics.

Practical Implications — The findings offer valuable guidance for village governments in developing more strategic and SDG-aligned financial management policies, thereby enhancing the impact of sustainable rural development.